Mineral Resources


Mineral Resources

Buchans Resources Limited’s deposits contain the following mineral resource estimates as prepared by qualified independent consultants.  Tonnages have been rounded to the nearest 10,000 tonnes unless otherwise indicated.  The reported mineral resources are estimated in accordance with CIM guidelines for Classifications of Mineral Resources and Mineral Reserves.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.


Buchans, Newfoundland

Lundberg Deposit 

NSR Cut-off (USD/t)CategoryTonnesZn %Pb %Cu %Ag g/tAu g/tZn Eq. %NSR (USD/t)Strip Ratio
20Indicated16,790,0001.530.640.425.690.073.3854.982.9
20 Inferred 380,000 2.03 1.01 0.36 22.350.31 4.46 72.95

  1. Mineral Resource tonnages have been rounded to the nearest 10,000. Totals may vary due to rounding.
  2. Price assumptions used were US $1.20/lb Zn, $1.00/lb Pb, $3.00/lb Cu, $1,250/oz Au, and $17/oz Ag.
  3. Metallurgical recoveries to concentrates are based on the Central Milling Facility Assessment (Thibault & Associates Ltd., 2017). Metal recoveries are 83.0% Cu, 13.3% Au, and 7.84% Ag in the copper concentrate, 84.3% Pb, 10.5% Au, and 50.3% Ag in the lead concentrate, and 87.2% Zn, 8.28% Au, and 14.8% Ag in the zinc concentrate.
  4. Net Smelter Return (NSR) USD/t values were determined by calculating the value of each Mineral Resource model block using an NSR calculator prepared by Stantec Consulting. The NSR calculator uses the stated metal pricing, metallurgical recoveries to concentrates, concentrate payable factors and current shipping and smelting terms for similar concentrates.
  5. Zinc Equivalent metal grade (Zn Eq. %) was calculated as follows using metal pricing, metallurgical recoveries to concentrates, and concentrate payable factors as applied in the NSR calculator: Zn Eq % = Zn % + ((Cu % x 22.046 x 0.8020 x 3) + (Pb % x 22.046 x 0.8010 x 1) + (Au g/t / 31.10348 x 0.2198 x 1250) + (Ag g/t / 31.10348 x 0.6514 x 17))/(1.20 x 22.046 x 0.7412).
  6. The Mineral Resource pit shell was developed and optimized by MineTech International Limited. Optimization parameters include: mining at US $3 per tonne, processing at US $15 per tonne, and G&A at US $2 per tonne (total US $20).
  7. A cut-off value of $20 USD/t NSR within the optimized pit shell was used to estimate Mineral Resources.
  8. Mineral Resources were interpolated using Inverse Distance Squared methods applied to 1.5 metre downhole assay composites.
  9. Results of an interpolated Inverse Distance Squared bulk density model (g/cm3) were applied.
  10. Mineral Resources are considered to reflect reasonable prospects for economic extraction in the foreseeable future using conventional open pit mining methods.
  11. Mineral Resources do not have demonstrated economic viability.
  12. This estimate of Mineral Resources may be materially affected by environmental, permitting, legal title, taxation, socio-political, marketing, or other relevant issues.

In summary, the Lundberg deposit is now estimated to host In-pit Indicated Mineral Resources containing 1.25 billion pounds Zinc Equivalent as well as In-pit Inferred Mineral Resources containing 0.037 billion pounds Zinc Equivalent using an NSR cut-off at US$20 per tonne.  These resources are contained within an optimized model pit shell measuring 860 metres by 650 metres and extends to a maximum depth of 240 metres.  The In-Pit constrained resource has a strip ratio of 2.9 of which approximately 98.7% of the resources are assigned to the Indicated category resources.

   

Daniels Pond

Cut-off (Zn %) Category Tonnes Combined Zn%+Pb%+Cu% Zinc
(Zn) %
Lead
(Pb) %
Copper
(Cu) %
Silver
(Ag) g/t
Gold
(Au) g/t
1.5 Indicated 1,162,000 6.88 4.44 2.12 0.31 87.79 0.60
2.0   929,000 7.98 5.13 2.50 0.34 101.40 0.63
2.5    787,000 8.79 5.65 2.77 0.37 111.03 0.68
  Inferred 445,000 5.89 3.88 1.74 0.27 81.63 0.52
2.0      7.04 4.61 2.13 0.30 85.86 0.53
2.5      8.70 5.59 2.79 0.32 112.31 0.55

Bobbys Pond Deposit

Category Tonnes Zinc
(Zn) %
Lead
(Pb) %
Copper
(Cu) %
Silver
(Ag) g/t
Gold
(Au) g/t
Indicated 1,100,000 4.61 0.44 0.86 16.6 0.20
Inferred 1,180,000 3.75 0.27 0.95 10.95 0.06

Note: The resource estimate was prepared by Scott Wilson Roscoe Postle Associates on July 31, 2008 for Mountain Lake Resources, who subsequently sold the property to Minco in 2013. Mineral Resources are estimated at a cut-off grade of 1.1% CuEq, with Zn grade converted to Cu at 2.8:1 ratio, Pb grade converted to Cu at 4.35:1 ratio, an average copper price of US$2.50 per lb, an average zinc price of US$0.90 per lb, an average lead price of US$0.75 per lb, and a minimum horizontal width of 2.0 m of mineralization.

 

Tulks Hill Deposit

Mineral Resources Above the Adit
Zone Category Tonnes Copper
(Cu)%
Zinc
(Zn)%
Lead
(Pb)%
Silver
(Ag) g/t
Gold (Au)g/t
2 Indicated 290,000 0.91 5.03 2.00 38.81 1.24
3 Indicated 30,000 0.52 2.67 1.53 61.52 0.59
Total Indicated 320,000 0.87 4.81 1.96 40.94 1.18
Mineral Resources Below the Adit and Elsewhere
Zone Category Tonnes Copper
(Cu)%
Zinc
(Zn)%
Lead
(Pb)%
Silver
(Ag) g/t
Gold (Au)g/t
1 Indicated 4,000 0.79 1.09 0.41 26.19 0.31
2 Indicated 44,000 0.76 1.77 0.56 19.53 2.76
3 Indicated 5,000 0.52 2.46 1.39 57.95 0.66
4 Indicated 58,000 1.12 1.42 0.60 15.09 0.06
Total Indicated 111,000 0.94 1.55 0.60 18.24 1.15

Note: Scott Wilson RPA report dated June 2008 entitled: Technical Report on the Tulks Hill Cu-Zn Project. Mineral Resource Estimate of the T3 Lens, Tulks Hill Deposit. Mineral Resources are estimated at a minimum lens horizontal width of 2.0 m and at a cut-off grade of equivalent 1.1% Cu (1% Cu = 2.3% Zn). Density of mineralized rock is 4.38 t/m3. Indicated Mineral Resources include those mineralized blocks defined by diamond drill holes spaced 50 m or less.


New Brunswick, Canada

Woodstock Manganese

Mn % Cut-off Category Rounded Tonnes Mn % Fe %
3 Inferred 44,790,000 9.84 14.15
*3.5 Inferred 44,770,000 9.85 14.15
4 Inferred 44,620,000 9.87 14.17
4.5 Inferred 44,390,000 9.90 14.20
5 Inferred 43,710,000 9.98 14.29
6 Inferred 41,610,000 10.20 14.55
7 Inferred 38,260,000 10.52 14.91
8 Inferred 33,800,000 10.92 15.36
9 Inferred 28,830,000 11.34 15.83
10 Inferred 22,460,000 11.86 16.42
11 Inferred 15,330,000 12.49 17.12
12 Inferred 9,100,000 13.19 17.93

Note: Scott Wilson RPA report dated June 2008 entitled: Technical Report on the Tulks Hill Cu-Zn Project. Mineral Resource Estimate of the T3 Lens, Tulks Hill Deposit. Mineral Resources are estimated at a minimum lens horizontal width of 2.0 m and at a cut-off grade of equivalent 1.1% Cu (1% Cu = 2.3% Zn). Density of mineralized rock is 4.38 t/m3. Indicated Mineral Resources include those mineralized blocks defined by diamond drill holes spaced 50 m or less.


Mexico Properties

(through 26% ownership in Xtierra Inc.)

Bilboa Project

CategoryRounded
Tonnes
Zinc
(Zn)%
Lead
(Pb)%
  Copper
(Cu)%
Silver
(Ag)g/t
Indicated6,125,0002.311.810.1965
Inferred4,510,000 1.391.780.1547

Note:  Runge Pincock Minarco (“RPM”) estimated mineral resource figures published by RPM Preliminary Economic Assessment Report dated April 28, 2014.  Mineral resource estimates were calculated using a 3% AnEq cut-off, using US$0.935 lb/Zn, US$1.008 lb/Pb, and US$30.235oz/Ag.  The zinc equivalent was calculated using the following metallurgical recoveries 76.7% Zn, 90.6% Pb and 73.4% Ag. 

Laguna Project

Mineral
Reserves
Rounded
Tonnes
Silver
(Ag)g/t
Gold
(Au)g/t
Mercury
(Hg)g/t
Proven529,000 55.120.29351.04
Probable6,270,00058.160.31327.06
Total P+P6,799,000 57.920.31328.92

Source Micon report dated February, 2008 entitled: Technical Report for the Mineral Resource and Mineral Reserve Estimates, Pedernalillo Tailings Project, Zacatecas State, Mexico.